China’s manufacturing sector faces a series of obstacles that could slow its growth this year, according to a recent report by Citibank. The most visible sign of this situation is that investment in the sector has recovered more slowly than in the rest of the Chinese economy. In 2020, investment in this sector fell by 2.2%. The reasons? There are several. Corporate profits in the sector are its main source of financing, and these were reduced in 2020 due to the effects of the pandemic. In this regard, Zou Lan, head of the financial markets department at the People’s Bank of China (PBOC), attributed the slowdown in investment in the sector to the liquidity constraints it faced last year. Added to this is the pressure on their profits this year due to rising raw material prices and the resumption of social security contributions, which had been suspended during the pandemic. In April, however, the People’s Bank of China noted that investment in manufacturing is beginning to show positive results thanks to growing support from the financial sector.